Answered: The Flemings will need $80,000 annually…

The Flemings will need $80,000 annually for 20 years during their retirement. How much will they have at retirement if they can earn a 4% rate of interest on their investment?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 8E

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Question

The Flemings

Expert Solution

Step 1

The present value of the annuity is the current value of a series of annuity payments.
It shows the worth of the total future amount at present times.
It simply depicts the cash value of future annuity payments.

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